Extra Space Storage Inc

Hello, everyone. Thank you for joining us and welcome to Extra Space Storage Inc. Q1 2026 earnings call. After today's prepared marks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Jared Conley, Vice President of Investor Relations. Please go ahead.

Thank you, Karen. Welcome to Extra Space Storage's first quarter 2026 earnings call. In addition to our press release, we have furnished unaudited supplemental financial information on our website. Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the private securities litigation reform act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements are qualified by the cautionary statements contained in the company's latest filings with the SEC, which we encourage our listeners to review. Forward-looking statements represent management's estimates as of today, April 29, 2026. The company assumes no obligation to revise or update any forward-looking statements because of changing market conditions or other circumstances after the date of this conference call. I would like to now turn the time over to Joe Margolis, Chief Executive Officer.

Thanks, Jared, and thank you everyone for joining today's call. We are pleased to report first quarter core FFO of $2.04 per share, up 2% year over year. Our solid performance demonstrates the strength and resilience of our diversified portfolio and best-in-class platform as we navigate an improving operating environment. Operationally, we delivered positive same-store revenue growth of 1.7%, which exceeded our internal projections. We ended the quarter with same-store occupancy at 93%, compared to 93.2% in the prior year, with the year-over-year occupancy delta improving 50 basis points since year-end. We did this while continuing to achieve positive rate growth to new customers during the quarter, and our systems continue to optimize for total revenue with no preference for moving rate or occupancy. We are seeing encouraging broad-based revenue improvement across our markets, driven primarily by declining new supply. The sequential new customer rate gains we have been achieving over recent quarters are now translating into revenue growth These positive operating trends position us well as we enter the leasing scene. Our diversified external growth platform continues to be effective across multiple channels. We continue to review a high volume of acquisition opportunities while maintaining a disciplined approach given current asset pricing relative to our cost of capital. we are projecting $200 million in total acquisitions for 2026, under the assumption that we will close materially more in total transactions, primarily in asset-light joint venture structures. Our bridge loan program continues to perform well, maintaining an average balance of approximately $1.5 billion in Q1 2026. This program not only generates attractive interest income, but also serves to expand our management business and provides an opportunity for future acquisitions. Our third party management platform added 84 stores in the quarter with net growth of 60 stores, bringing our total managed portfolio to 1,916 stores. The consistent demand for our management services demonstrates the value we deliver through superior property performance, operational expertise, and our data and technology platforms. Overall, we are encouraged by our first quarter performance. The sequential improvement across our portfolio gives us confidence in our ability to capitalize on continued supply moderation and strengthening fundamentals as we progress through 2026. I will now turn the time over to our CFO, Jeff Norman.